India gold demand (Diwali)

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Hajis will walk around barefoot dressed in a sheet and stick weld without a mask just to save a few.gold beads.
 
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Despite record high prices, consumer buying during Diwali was strong in both gold jewellery and bars and coins.5 Markets and media reported higher footfall at jewellery stores and robust buying of coins via online as well as offline platforms. Promotional events and marketing campaigns undertaken by jewellers to lift sales.6 The price increase since Diwali 2023, has enhanced consumer sentiment, positioning it as a long-term investment. And volatility in domestic equity markets, coupled with rising international prices, has added to gold’s investment appeal. Anecdotal reports suggest that auspicious ‘token’ purchases were rather broad-based, spanning regions and demographics.

Despite a y/y drop in the volume of gold sold,7 the value of sales increased, driven by the higher price.
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India’s gold market update: Festive buying holds ground in the face of high prices

Despite record-high prices Diwali gold demand was healthy, with strong sales driven by investment appealIndian gold ETFs continue to attract strong interest from investors, with October seeing the largest inflows on recordThe Reserve Bank of India (RBI) has purchased 78t of gold to date this...
www.gold.org www.gold.org
 
The country's gold imports in November reached a record high of $ 14.86 billion, registering a four-fold increase, mainly on account of festival and wedding demands, according to commerce ministry data.

Gold imports stood at $ 3.44 billion in November 2023.

Cumulatively, imports during April-November this fiscal year rose 49 per cent to $49 billion as against $32.93 billion in the same period last fiscal year.
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In the Budget, the government slashed the duty from 15 per cent to 6 per cent.

India's gold imports, which have a bearing on the country's current account deficit (CAD), surged 30 per cent to $ 45.54 billion in 2023-24.
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^^:
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January 15 marked the end of an inauspicious buying period on the Hindu calendar, but demand weakness appears to have persisted into the current month.
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According to the World Gold Council, many retailers are not restocking due to the high prices because they face challenges in making payments to wholesalers, creating a liquidity crunch in the industry.
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India's gold imports are set to tumble 85% in February from year ago levels to their lowest in 20 years, with demand sapped by record prices for the precious metal, a government official and three bank dealers told Reuters.
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"Banks and jewellers have cleared a very small amount of gold from customs so far this month. Unless prices crash in the next 2-3 days, we are unlikely to see any improvement in the import numbers," said a government official, who declined to be named as he was not authorised to talk to the media.
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sg.finance.yahoo.com

Exclusive-India's Feb gold imports to hit 20-year low on record high prices, sources say

India's gold imports are set to tumble 85% in February from year ago levels to their lowest in 20 years, with demand sapped by record prices for the precious metal, a government official and three bank dealers told Reuters. Lower gold imports could help India narrow its trade deficit and...
sg.finance.yahoo.com sg.finance.yahoo.com

India has tapped out on the gold trade leaving China and USA to hoover up London et al's gold.
 
Indians have become heavy investors in gold after a downturn in local equities, with a boom in exchange traded funds driving purchases as the commodity’s price hits record highs.

Net inflows to gold ETFs in India reached a record Rs37.5bn ($437mn) in January and Rs19.8bn in February as the metal touched all-time highs, according to the Association of Mutual Funds in India.

Falling share prices have pushed Indians to an asset they have long been fond of, said analysts, with ETFs making it easier for retail traders to invest.
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“There has been a shift from gold jewellery into pure investments,” said Kavita Chacko, the WGC’s India research head.

Investors have been “redirecting free cash flow towards gold ETFs” amid “ongoing global and domestic economic and policy uncertainty”, the WGC wrote in its latest India report.
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www.ft.com

Indians shift to gold investments as local equities founder

Boom in gold ETFs fuels purchases of asset long loved by domestic investors as prices hit record
www.ft.com www.ft.com

h/t:
 
Pretty soon only rich individuals, central banks and hedge funds will own gold. The few thousand ounces the people.on the forum hold are above average, but nowhere near the real players.
 
nickndfl said:
Pretty soon only rich individuals, central banks and hedge funds will own gold. The few thousand ounces the people.on the forum hold are above average, but nowhere near the real players.
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If you are talking about western entities, I doubt it.
Most of them, when they are not invested in gold derivatives they are mostly in unallocated accounts and Exchange Traded Products - ETFs & Co. - that don't give ownership.
 
India is considering importing gold and other high value items, including silver, platinum and precious stones from the US to address Washington’s concern of a significant trade deficit with India, two people aware of the matter said.
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Per Grok, the trade deficit in 2024 was $45.7 billion. That's about 450 metric tons of gold or 44,000 metric tons of silver (twice global production).
 
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The gold jewellery market is also showing signs of renewed demand as retailers gear up for the festive and wedding season, which runs from early August through year-end.

“Anecdotal reports from industry stakeholders suggest a positive outlook,” Chacko said. “[M]any manufacturers reported stronger-than-expected buying interest and a noticeable pickup in orders from both large chain stores and independent retailers. Retailers who had been cautious about their inventories in recent months due to lacklustre demand reported active restocking in anticipation of improved festive sales.”
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Flows into Indian gold ETFs also remained positive in July, marking the third consecutive month of net inflows.

“Global policy-related uncertainties and geopolitical tensions have been major drivers of this trend,” she said. “But, the pace of net inflows slowed, declining to INR12.6bn (US$146mn) in July, down 41% from the previous month. This was broadly in line with our initial estimate and nearly 34% higher than the 2024 monthly average of INR 9.4bn.”

Chacko said this positive momentum has carried over into August, with initial data for the first two weeks showing higher inflows.
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www.kitco.com

India’s gold market strengthened in July as ETF holdings and imports surged – WGC’s Chacko

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
www.kitco.com www.kitco.com

Gold might be too expensive for the Turks (who are reportedly buying silver now instead), but Indians apparently still like gold.
 
pmbug said:
www.kitco.com

India’s gold market strengthened in July as ETF holdings and imports surged – WGC’s Chacko

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
www.kitco.com www.kitco.com

Gold might be too expensive for the Turks (who are reportedly buying silver now instead), but Indians apparently still like gold.
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Maybe. But gold will always be king in Turkey. Its like their sacred bank and its passed on generation after generation so even if its out of reach now for most Turks, and I believe you, its still under the floorboards from great, great, great, great grandpa's time.

I was in Turkey in the late '70s and I dont remember ever spending their Lira currency. First off they didn't want it ; They wanted $USD's which would go from 50 to 1 to 500 to 1 over night. Its not much better now but at least its stable at 40 Lira to 1 $USD. Back then $USD's and black market profits for those lucky enough to work at the airbase was their ticket to gold. And a lot of it was in jewelry too. 22kt jewelry.

India has always been a larger market for silver going back to the British colonial days and with silver being more affordable. Even in the 16'th and 17'th centuries when Spain and Portugal were in Asia India was probably the largest god and silver investment market in the world. Japan was rich in silver and this silver was the only money acceptable for China, India, Korea, and all the other countries Japan was constantly stepping on. The exchange rates for Japanese silver for China's silks, other goods, India spices...ect were Portugals and Spains most closely guarded secrets.
 
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